{"id":924241,"date":"2018-08-13T13:27:59","date_gmt":"2018-08-13T13:27:59","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=924241"},"modified":"2018-08-13T13:27:59","modified_gmt":"2018-08-13T13:27:59","slug":"first-majestic-shares-hammered-after-reporting-40-million-loss-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=924241","title":{"rendered":"First Majestic shares hammered after reporting $40 million-loss"},"content":{"rendered":"

By Cecilia Jamasmie<\/a><\/span> <\/p>\n

Shares in Canada’s First Majestic Silver (NYSE:AG) (TSX:FR) dropped more than 10% in New York and Toronto on Monday after it posted a second-quarter loss of $40 million<\/a>, compared to a profit in the same period a year earlier.<\/p>\n

The Mexico-focused miner said it had a loss of 22 cents on a per-share basis. Adjusted for one-time gains and costs, losses were 7 cents per share.<\/p>\n

First Majestic shares dropped 11.6% to Cdn$ 7.60 in Toronto at 9:55 am and 10.65% to $5.79 in New York by 10:29 a.m. So far this year, the stock has declined nearly 4%.<\/p>\n

It also recorded an impairment charge of $31.7 million, or $20.5 million net of tax, related to placing its La Guitarra mine on care and maintenance.<\/q><\/p>\n

There were some good news in today’s results too. Silver production for the April-June period was 2.8 million ounces, a 27% increase compared to the first three months of the year, thanks mainly to the addition of the San Dimas mine to the company’s portfolio.<\/p>\n

The silver miner’s revenue for the period stood at $79.7 million, a 36% increase compared to the first quarter of 2018, but logged mine operating losses of $2.3 million compared to earnings of $1.4 million in the second quarter last year.<\/p>\n

In May, the company acquired fellow miner Primero Mining<\/a> (TSX:P), in a cash and stock deal valued at $320 million, including debt.<\/p>\n

With the transaction, first announced in January<\/a>, First Majestic gained the San Dimas silver-gold asset, a large, world-class operation, which is now the company’s seventh mine in Mexico.<\/p>\n

As part of the deal, the company restructured a pre-existing purchase agreement with Wheaton Precious Metals Corp (NYSE, TSX: WPM), the world’s largest pure silver and gold streaming company.<\/p>\n

Despite the addition of San Dimas, which contributed $5.1 million in mine operating earnings during its 52 days of operations, consolidated mine operating earnings underperformed the previous year due to a decline in production from the Del Toro and La Encantada mines.<\/p>\n

First Majestic also recorded an impairment charge of $31.7 million, or $20.5 million net of tax, related to placing the La Guitarra mine on care and maintenance.<\/p>\n

Realized average silver price of $16.74 per ounce, relatively consistent with the prior quarter.<\/p>\n

The company owns and operates seven silver producing mines in Mexico, including La Encantada, La Parrilla, San Martin, La Guitarra, Del Toro, Santa Elena and the recently acquired San Dimas.<\/p>\n

Silver has been caught in a protracted multi-year slump since the end of the precious metals bull market in late 2012. While some are positive on the outlook for the white metal<\/a>, based partly on ongoing supply deficits, its future remains uncertain<\/a>.<\/p>\n

The post First Majestic shares hammered after reporting $40 million-loss<\/a> appeared first on MINING.com<\/a>.<\/p>\n

…read more<\/a> <\/p>\n

From:: Mining.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Cecilia Jamasmie Shares in Canada’s First Majestic Silver (NYSE:AG) (TSX:FR) dropped more than 10% in New York and Toronto on Monday after it posted a second-quarter loss of $40 million, compared to a profit in the same period a year earlier. The Mexico-focused miner said it had a loss of 22 cents on a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/924241"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=924241"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/924241\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=924241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=924241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=924241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}